The Vice President of the European Investment Bank (EIB), Wilhelm Molterer and the Chairman of State Committee on Investments and State Property Management, Davlatali Saidov, in the presence of the President of Tajikistan, Emomali Rahmon, have signed a Memorandum of Understanding, representing a significant step in deepening the cooperation between the Republic of Tajikistan and the EIB.

Mr Molterer stated: “This Memorandum of Understanding will help to promote the cooperation between the EIB and the Republic of Tajikistan focused on project financing, so benefiting both the EU and Tajikistan. Priority sectors for EIB financing are renewable energy sources including hydropower generation, energy efficiency and agricultural infrastructure in the context of the broader objective of climate change mitigation and the adaptation and development of social and economic infrastructure.”

Regular discussions between the EIB and Tajikistan are held to explore and identify priority projects for EIB involvement in line with its mandate and objectives. The EIB operates and will continue to operate in Tajikistan in close coordination with the Tajik authorities and other international financial institutions present in this important region.

The Republic of Tajikistan entered into a Framework Agreement with the EIB on 10 February 2009, establishing the legal framework for EIB activities in the country. This was followed by the signing of the first EIB loan in Central Asia in June 2011 for financing the rehabilitation of electricity distribution networks in the Sugd region.

The EIB is in the process of conducting the due diligence for the Kairakkum Hydro-Power Plant Rehabilitation Project in close cooperation with the EBRD.

Background:

As the long-term lending institution of the European Union, the European Investment Bank supports the European Neighbourhood Policy in the EU’s Eastern neighbourhood countries and the EU’s policy in Central Asia, regions which together encompass 12 post-Soviet states. EIB project financing promotes prosperity and increased regional integration, which contributes to the stability of these regions and helps to forge stronger intraregional partnerships.

The EIB cooperates closely towards implementation of EU external policy goals with the European Commission and the European Union External Action and partner financing institutions like EBRD and other European bilateral Financial Institutions to improve the leverage of EU budgetary funds, to the greatest benefit of Eastern Partnership countries as well as mutual benefit of the EU and the partner countries.